Calculate the amount of interest capitalized

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Question - Hawkins Corporation began construction of a motel on March 31, 2021. The project was completed on April 30, 2022. No new loans were required to fund construction. Hawkins does have the following two interest-bearing liabilities that were outstanding throughout the construction period:

$4,400,000, 6% note

$18,960,000, 10% bonds

Construction expenditures incurred were as follows:

March 31, 2021 $4,360,000

June 30, 2021 6,360,000

November 30, 2021 1,872,000

February 28, 2022 3,360,000

The company's fiscal year-end is December 31. Calculate the amount of interest capitalized for 2021 and 2022.

Reference no: EM133113881

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